July 10, 2015
Contact: Special Agent Sharon Santiago
Phone Number: (312) 353-7875
Ashland Residents Agree To Plead Guilty To Distributing Controlled Substance Analogues And Filing False Tax Returns
MADISON, Wis. - John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that John C. Morrison, 70, and Anna F. Novak, 57, both of Ashland, Wis. have agreed to plead guilty to federal drug and tax charges. The guilty plea hearings have been scheduled for August 27, 2015, at 1:00 p.m. and 1:30 p.m. before the Honorable James D. Peterson in U.S. District Court in Madison.
Morrison and Novak, the owners of JC Moon on Main Street in Ashland, were indicted on December 10, 2014, by a federal grand jury in the Western District of Wisconsin and charged with conspiring to distribute and distributing controlled substance analogues, and filing false tax returns that failed to report approximately $575,752 in business receipts they skimmed from JC Moon over a three-year period. Morrison and Novak have agreed to plead guilty to distributing controlled substance analogues and filing false tax returns. They have also agreed to pay approximately $200,000 to the IRS based on the tax scheme. They face a maximum penalty of 20 years in federal prison on the drug charge, and three years in federal prison on the tax charge.
The charges against John C. Morrison and Anna F. Novak were the result of a lengthy, joint investigation conducted by the Drug Enforcement Administration; IRS Criminal Investigation; Wisconsin Department of Justice, Division of Criminal Investigation; Ashland County District Attorney; Ashland County Sheriff’s Department; and Ashland Police Department. The prosecution of this case is being handled by United States Attorney Vaudreuil and Assistant U.S. Attorney David Reinhard.